Well, there is no doubt in saying that these days where the market is full of reuse material, it becomes common to purchase a second-hand common which is quite beneficial and effective as well. When it comes to buying a second motor vehicle whether it is car or bike, there are a few things that people should pay attention to such as the range of the car, take a test drive, do a quick research on the vehicle, do not hesitate to negotiate and the last but the most important thing is the transfer of the insurance policy.
We all know that to drive legally on the roads of India, it is important to have a valid insurance policy. In India under the motor vehicle act 1988, it is mandatory to carry a valid insurance policy whenever you are driving. On buying a used car, it is essential to pay attention to the essential documents and transfer of insurance policy. Let's talk about the main issue the transfer of car insurance policy Basically, the process of car insurance transfer works in tandem along with the transference of ownership.
Once a person bought the car, the policy of the previous owner will not remain valid. A per the IRDAI, in case of car insurance claim, the name and the address of the owner should be the same on the registration paper and policy’s paper as well. In case of an emergency, it will become easier for the new owner to recover the cost easily if he/she has a paper on his name.
Moreover, failure to insure one’s vehicle can result in denial of a claim. Along with Rs. 50 transfer fee, the following documents as required for car insurance transfer: Registration certificate/form 29 Old policy document No Objection Clause (NOC) from the previous policyholder Application form Inspection Report (to be carried out by the insurance company) No Claims Bonus difference amount
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